Budget 2012: Main points at-a-glance

Economy

• Borrowing falls and growth increases. Government borrowing £1bn lower than expected, this year at £126bn and £120bn the year after, and £21bn by 2016/17, the structural deficit eliminated.
• Office for Budget Responsibility revises UK growth forecast for 2012 to 0.8% – from 0.7%.

Income tax

• From April 2013, the 50p top rate of tax cut to 45p.
• Personal income tax allowance raised to £9,205 from April 2013, as Chancellor aims for £10,000 target. 24 million people will be £220 better off.
• Integration of tax and National Insurance regimes to move ahead with detailed consultation published in April.
• New general anti-tax avoidance rule to be introduced.
• Cap of 25% on personal tax reliefs for anyone earning more than £50,000
• Age-related allowances for pensioners to be simplified, creating a single personal allowance for all but ensuring no pensioner loses in cash terms.

Business

• Corporation tax cut further to 24% from next month. By 2014 it will fall to 22%.
• Simplified tax system for small firms with a turnover below £77,000.
• Government support for £150m of tax increment financing to help councils promote development and an extra £270m for the Growing Places fund.
• Tax relief for video games, animation and high-end television production sectors.
• Government considering enterprise loans for young people to start their own business.
• Finance partnership and enterprise finance guarantee schemes extended.

Infrastructure

• Chancellor indicates support for airport capacity increases in the South East
• Extend electrification of the Transpennine route between Manchester and Sheffield. Further improvements to the lines between Manchester and Preston, and Manchester and Blackpool.
• Funding for superfast broadband and wi-fi in the UK’s 10 largest cities.

 
Planning

• Overhaul of planning regulations to be unveiled next week based on presumption of consent to sustainable development

Other

• Sunday trading: laws relaxed for eight Sundays in the summer.
• Child benefit scaled back for those earning over $50,000, removed for incomes in excess of £60,000

Public sector

• Public sector pay to be more responsive to local pay rates. Independent Pay Review bodies to review regional public sector pay.

Property

• Stamp duty loopholes to be filled. ‘Manion tax@ 15% on houses worth more than £2m bought through corporate envelopes.
• Stamp duty on all homes worth more than £2m increased to 7% from midnight